Problem
Crypto is here to stay, and DeFi serves as its backbone, enabling users to achieve financial freedom. However, the industry faces key challenges in scaling sustainable and flexible yield opportunities.
1. Yield Opportunities Don’t Match Crypto’s Risk Appetite
Crypto represents a unique economy where users often hold volatile assets as an alternative to cash, seeking to maximize returns. This foundational behaviour has made staking products immensely successful, dominating DeFi and holding the highest TVL across the ecosystem with over $50bn in staking. Staking provides a reliable source of safe, predictable yield, appealing to users seeking a baseline return on their crypto assets.
However, users are increasingly interested in earning more yield on top of staking or any yield bearing asset for that matter, even if it means taking on additional risk. Paradoxically, while crypto users are comfortable to market volatility and high risk, their options for yield generation remain limited to low-yield, low-risk strategies. On the other hand, high-yield opportunities are frequently unsustainable, driven by token emissions or opaque mechanisms that erode trust.
2. The Paradox of Yield vs. Speculation
In crypto, some of the most successful products thrive on speculation—such as perpetual trading, meme tokens, or prediction markets. These products allow users to actively participate and capitalize on market predictions.
However, when it comes to yield, there is a glaring gap. Existing solutions don’t enable users to speculate on markets while earning yield. This leaves a vast unmet need for products that combine the ability to speculate with sustainable yield-generation mechanisms.
3. Barriers to Advanced Strategies
Advanced yield-generation strategies remain largely inaccessible to most users. These options often require technical expertise, significant scale or a lot of steps and hustle, making them impractical for the average crypto participant and leaving many unable to fully capitalize on their assets.
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